Harvlie v. Jack Post Corp.

760 N.W.2d 277, 280 Mich. App. 439
CourtMichigan Court of Appeals
DecidedAugust 21, 2008
DocketDocket 276044
StatusPublished
Cited by5 cases

This text of 760 N.W.2d 277 (Harvlie v. Jack Post Corp.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harvlie v. Jack Post Corp., 760 N.W.2d 277, 280 Mich. App. 439 (Mich. Ct. App. 2008).

Opinion

PER CURIAM.

This matter returns to this Court on remand from our Supreme Court for consideration as on leave granted. 477 Mich 1017 (2007). Defendant employer and its insurer appeal a decision of the Workers’ Compensation Appellate Commission (WCAC), which affirmed with modifications 1 an order of *441 the magistrate. The magistrate ordered (1) reimbursement for all reasonable expenses incurred by plaintiffs care providers from September through November 2003; (2) reimbursement for their mileage and attendant care; (3) reimbursement to Blue Cross Blue Shield (Blue Cross); (4) an attorney fee in an amount constituting 30 percent of the total of the medical bills ordered to be paid; and (5) a penalty for failing to pay the medical bills in a timely manner. We affirm.

I. FACTS

Plaintiff, Richard E. Harvlie, sustained a burn injury to his right leg while in the course of his employment as a welder for defendant employer, Jack Post Corporation. The magistrate granted plaintiff an open award of wage loss benefits and reasonable and necessary medical benefits. Thereafter, Blue Cross filed an application for mediation or hearing, seeking reimbursement for medical expenses paid in association with the treatment of plaintiffs injury. Plaintiff then filed an application for mediation or hearing, representing that since the magistrate granted the open award, defendant had “refused to pay for reasonable and necessary medical expenses.” Plaintiff sought “all benefits afforded by the [Worker’s Disability Compensation] Act, along with actual costs and attorney fees in securing these benefits” and the “imposition of the penalty provisions of the Act for failure to make payments in a timely matter [sic] as prescribed by Statute, and in violation of the Order of [the magistrate].”

Following trial on the merits of the petitions, the magistrate granted the reimbursement sought by both Blue Cross and plaintiff. The magistrate set the rate for *442 reimbursement to plaintiffs relatives for nursing care at $12.50 an hour. He based this rate on the earnings of plaintiffs sister-in-law at her regular work, which he found was approximately the same hourly rate as a certified nurse’s assistant.

The magistrate also found that plaintiffs counsel was entitled to an attorney fee under MCL 418.315(1) with regard to the unpaid medical bills. The magistrate agreed with plaintiffs counsel that “the bills would not have been paid but for the fact that he filed a petition.” Moreover, because the bills were not paid within 30 days of their receipt, the magistrate ordered defendants to pay a $1,500 penalty.

Defendants appealed to the WCAC, challenging the magistrate’s award of attorney fees. The WCAC rejected each of defendants’ challenges to the fee award. First, the WCAC determined that, when the last two sentences of § 315(1) are read together, “it becomes clear that the prorated attorney fee referred to should be paid by the employer/carrier and not the health care provider.” The WCAC conceded that the authority to award an attorney fee against the employer or its insurance carrier would not automatically occur in all cases where there is an award of medical benefits; rather, the “plaintiff bears the burden of proving that the employer/carrier is in fact guilty of that breach, in order to have the magistrate award those attorney fees.” The WCAC then opined that, in this case, where the medical bills were paid before the second trial but not before plaintiff went to the expense of hiring an attorney and filing an application, the magistrate did not abuse his authority in ordering defendant employer to pay plaintiffs attorney fees. The WCAC observed that “[i]t certainly does not appear that defendant was *443 routinely paying medical bills, until after plaintiff sought help from the workers’ compensation agency.”

Second, the WCAC rejected defendants’ argument that the doctrine of res judicata barred any award of attorney fees for medical expenses incurred before the first trial because plaintiff could have sought, but did not seek, an attorney fee award for those expenses at the time of the first trial. The WCAC opined:

What defendants fail to understand (or acknowledge) is, that it is not the compensability of the medical bills, but the ongoing failure, neglect or refusal to pay, which allows the magistrate the discretion to order the attorney fees. If plaintiff were seeking an attorney fee for medical benefits which had not been timely paid before the first trial, but had been promptly paid upon the magistrate’s order, res judicata would be a bar to such an award. Here, defendants are ordered to pay an attorney fee as a result of their failure to pay medical bills, which were ordered after the first trial.

Third, the WCAC rejected defendants’ assertion that the magistrate miscalculated the amount on which he assessed an attorney fee by including some of the bills paid by Blue Cross. After reviewing plaintiffs exhibits “in detail,” the WCAC concluded that “[w]hile it is remotely possible that these are the same charges, defendants have simply not persuaded us that that is the case.”

Fourth, the WCAC rejected defendants’ assertion that there was no sound public policy reason for awarding an attorney fee, even for unpaid medical benefits, when a claimant’s attorney has adequate motivation to pursue a claim on behalf of the claimant. The WCAC agreed with plaintiff that defendants overlooked one of the underlying purposes of the attorney fee provision, which is “to deter employers from breaching their statutory duty to provide medical treatment to injured *444 workers.” The WCAC added, “Immunizing employers from liability for attorney fees whenever the claimant or a third-party payer can afford to hire an attorney would hardly give employers an incentive to pay legitimate bills in a timely manner.” The WCAC opined that the magistrate did not abuse his discretion when he awarded attorney fees in this case because a rational basis for the award existed in the record: “Here there is ample evidence that the employer had notice of outstanding medical bills, but did not pay them until after plaintiff sought relief from the Workers’ Compensation Agency.”

Defendants now appeal.

II. STANDARD OF REVIEW

Our review of the WCAC’s decision is solely limited to ensuring the integrity of the administrative process. Mudel v Great Atlantic & Pacific Tea Co, 462 Mich 691, 701; 614 NW2d 607 (2000). “As long as there exists in the record any evidence supporting the WCAC’s decision, and as long as the WCAC did not misapprehend its administrative appellate role (e.g., engage in de novo review; apply the wrong rule of law), then the judiciary must treat the WCAC’s factual decisions as conclusive.” Id. at 703-704. This Court continues to exercise de novo review of questions of law involved in any final order of the WCAC. Id. at 697 n 3.

III. ANALYSIS

A. ATTORNEY FEES

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Cite This Page — Counsel Stack

Bluebook (online)
760 N.W.2d 277, 280 Mich. App. 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harvlie-v-jack-post-corp-michctapp-2008.